Unicharm Group Sustainability Kyo-sei Life External Partnerships Third-Party

Introduction Environment Society Governance

Sustainability Report 2022 Management Vision 2030 and Evaluations Assurance Report 036

Environmental Management
Our Basic Approach and Strategy Basic Environmental Policy and Environmental Action Guidelines Response to National Measures
In accordance with the Japanese government’s declaration to
The products and services that Unicharm provides are consum- Unicharm Group Basic Environmental Policy achieve carbon neutrality by 2050, Unicharm will also promote
ables essential to a clean and healthy lifestyle. At the same time, As a company that engages in the manufacture and sale of disposable activities geared to realizing a zero-carbon society in line with its
products, we recognize the extent of our responsibility to the global
they are closely connected to the global environment in terms 2050 vision.
environment. Through our business activities, we strive to create envi-
of use of resources and emissions of waste. In order to provide ronmentally friendly products so that we may in the future pass on a
As an initial step toward this goal, we teamed up with the Japan
better products to consumers around the world, we are expand- beautiful Earth to our future generations. Climate Leaders’ Partnership (JCLP), which we joined as a sup-
ing our operations globally while retaining a focus on Asia. We are committed to providing goods and services that bring comfort, porting member in October 2020, to actively proceed with the
As we do this, our role in and responsibility for reducing environ- excitement, and joy to people throughout the world and are deter- procurement of renewable electricity, in pursuit of 100% use of
mined to realize the sustainable development of a society that achieves
mental impacts have also increased with each passing year. renewable electricity by 2030.
a balance between environmental conservation and economic growth.
All of our employees are committed to environmental activities
following the Unicharm Group Basic Environmental Policy and Response to Japan Business Federation Measures
Environmental Action Guidelines, which were developed based Unicharm Group Environmental Action Guidelines We are a member of the Japan Business Federation (hereafter
on The Unicharm Way, consisting of the Unicharm Ideals, and Abide by all laws and regulations! Keidanren) and are proactively working toward the measures it
Beliefs & Pledges and Corporate Code of Conduct. We carefully Eliminate waste! promotes, including:
Enhance productivity!
monitor the impact our business activities have on the environ- • Keidanren’s Commitment to a Low Carbon Society,
Reduce the use of natural resources!
ment and are promoting initiatives to realize our two environ- • Keidanren Carbon Neutrality Action Plan,
Make sound choices for the environment!
mental goals of “reducing environmental impacts” and Learn more about environmental issues! • Voluntary Action Plan for the Formation of a Recycling-
“improving economic efficiency” with the aim of achieving a Share efforts for helping to improve the environment! Oriented Society, and
sustainable society. • Keidanren Declaration of Biodiversity and Action Policy.

Engagement with Stakeholders 102-13 Validation of Environmental Protection Activities 103-3

Environmental issues such as climate change cannot be solved In 2019, we identified our material issues through open discus-
by Unicharm alone. We are therefore proceeding with efforts sions with NGOs and formulated our medium- to long-term ESG
and participating in the planning of measures in partnership goals, Kyo-sei Life Vision 2030, as well as Environmental Targets
with various stakeholders including trade associations and 2030, the environmental goals we strive to achieve by 2030.
governments.
Unicharm Group Sustainability Kyo-sei Life External Partnerships Third-Party
Introduction Environment Society Governance
Sustainability Report 2022 Management Vision 2030 and Evaluations Assurance Report 037

Environmental Targets 2030 102-21,102-43,102-44 2. Approach to responding to climate change We took these ideas as our themes for discussion in the ESG
• T ake proactive steps to accelerate the creation of a renewable Committee and used them to formulate and plan Groupwide
In order to formulate Environmental Targets 2030, we held open
energy society by announcing initiatives aimed at achieving a promotion of Environmental Targets 2030 in May 2020.
discussions with stakeholders, identified material issues, and
net zero CO2 emissions society by 2050 and through activities
established fixed targets. We continue to promote internal Environmental Materiality Identified by Unicharm for the Period
such as lobbying the government and electric power providers. Leading up to 2030
discussions aimed at achieving our targets.
3. Approach to sustainable procurement of forest resources High • Tackling the problem of
• Effective utilization of
• Conduct thorough surveys of production areas and share rele- plastic waste polluting
Holding Open Discussions on Environmental Activities • Effective utilization forest resources
the oceans
vant information publicly as there may be problems in certain of water resources • Promotion of environmen-
• Responding to climate
With the aim of correctly identifying key environmental issues tally friendly products
change
areas even if the forest resources are certified.

Stakeholder Interest
and using this knowledge effectively in our business activities, we • Promoting a recycling
• Expand our use of certified materials, using our guidelines not • Responding to • Promoting measures to
society
held an open discussion with international conservation organi- environmental air safeguard marine
• Enhancing the quality of
only for the raw materials used in our products but also for the pollution (NOx/SOx) resources
zation, World Wide Fund for Nature (WWF) Japan, in April 2019. information disclosure
forest-derived resources used in the making of office furniture,
Managers from Unicharm’s Marketing and ESG Divisions were • Appropriate manage-
promotional materials, and similar products. • Compliance with laws • Promoting efficient
ment of chemical
joined by three WWF Japan officials, including the conservation and regulations production activities
substances
director.
Impact on Unicharm High

Suggestions from the open discussion: Environmental Targets 2030

(1) Company vision Implementation Items Base Year 2021 Targets 2021 Results 2022 Targets 2030 Targets 2050 Vision
Per unit
• When setting and sharing environmental targets for 2030, first Responding to Reducing usage of packaging materials 2019*1 –3% –0.2% –6% –30%
the problem of of sales
set out the Company’s vision for where it wants to be in 2050. plastic waste Selling products that contain no petroleum-
— — —
Development Development 10 or more stock-keeping
Realizing a new
derived plastic ongoing ongoing units (SKU) sold
• Once this 2050 vision has been established, consider what Raising awareness about proper disposal of 38% Rolled out at all Group
society with zero
— — 30% 45% plastic waste
must be achieved by 2030 as part of the process of realizing used products (6 countries) companies
Eliminating the use of plastic in sales Per unit In principle, reduced to
— –10% –8.9% (Japan) –20%
this overarching vision. promotional items of sales zero at all Group companies
Responding to Reducing CO2 emissions associated with Per unit
(2) Raising issues climate change raw materials procurement of sales
2016 –1.7% 9.7% (Japan) –3.4% –17%
Realizing a society
• In consideration of our areas of activity, three issues that Reducing CO2 emissions in manufacturing
Per unit
2016 –3.4% –26.9% –28.0% –34% with net zero CO2
of sales
emissions
Unicharm should actively work on are: (a) plastics pollution, Reducing CO2 emissions associated with Per unit
2016 –2.6% 23.7% (Japan) –5.2% –26%
disposal of used products of sales
(b) responding to climate change, and (c) sustainable procure- Forest-derived raw Forest-derived raw Forest-derived raw
Not contribut- Ensuring traceability to pulp and palm oil
ment of forest resources. ing to defores- production locations (country/region) — — materials: 98%*2 materials: 97%*2 materials: 98%*2 Completed
tation Palm oil: 80% Palm oil: 77% Palm oil: 80%
1. Approach to plastics pollution (response to Percentage of Percentage of Percentage of
procurement- certified factories: certified factories: certified factories: Realizing a society
• Follow the 3Rs (reduce, reuse, recycle) in the correct order to related issues) Expanding the use of certified pulp 50%*4 52%*4 60%*4 with zero defores-
— — 100%
promote reduction in the quantity of materials consumed and (PEFC*3- and CoC-certified) Percentage of Percentage of Percentage of tation related to
certified materials certified materials certified materials the purchasing of
effective use of recycled materials. procured: 60%*5 procured: 70%*5 procured: 75%*5 timber
Expanding the use of certified palm oil
• Consider adoption of the 5Rs (the 3Rs with the addition of (RSPO*6-certified)
— — 80% 77% 80% 100%

refuse and replace) and begin with actions that can be taken Promoting the recycling of used disposable
— — —
Development Development Rolled out in at least
diapers ongoing ongoing 10 municipalities
now to make steady progress in this area.
*1 We have updated our base year from 2016 to 2019 following a review in 2020.
• Take proactive steps in sharing information that makes it possi- *2 Percentage of raw materials derived from forest resources for which traceability has been established to their place of origin (country and region), in addition to third-party certified materials. Forest-derived
raw materials include pulp, tissue, separators, and airlaid pulp.
ble to monitor Unicharm’s engagement in this area. *3 Programme for the Endorsement of Forest Certification
*4 Percentage of Unicharm factories that have acquired CoC (chain of custody) certification
*5 Percentage of forest-derived raw materials including pulp, tissue, separators, and airlaid pulp that have acquired third-party certification
*6 Roundtable on Sustainable Palm Oil
Unicharm Group Sustainability Kyo-sei Life External Partnerships Third-Party
Introduction Environment Society Governance
Sustainability Report 2022 Management Vision 2030 and Evaluations Assurance Report 038

Management Structure Environmental Management Based on ISO Standards

102-20 Unicharm’s Environmental Targets 2030 and medium- to long-
term ESG goals, Kyo-sei Life Vision 2030, which include key ini- In order to improve our environmental performance, Unicharm
Our environmental activities are collectively managed and over- tiatives aimed at safeguarding the well-being of our planet, were has introduced ISO 14001 and has been promoting continuous
seen by the ESG Committee, which is chaired by the president & formulated in 2020. They determine our key environmental tar- improvement in accordance with its environmental management
CEO and operated under the Board of Directors. gets, are translated into targets for each individual division, and system (EMS).
The integrated implementation of ISO 14001 and ISO 9001, involve more finely-tuned activities such as individual targets and All of our business sites in Japan and overseas have acquired
both closely related to our day-to-day operations, is pursued weekly action plans linked to each division. ISO 9001 and ISO 14001 certifications and our quality manage-
independently by each of our business locations and involves a The key initiatives in Kyo-sei Life Vision 2030 center on the ment system (QMS) and EMS are applied on the basis of these
Plan–Do–Check–Act (PDCA) cycle and gate control based on achievement of certain targets by 2030 while Environmental certifications.
pre-set control points and key performance indicators (KPIs). The Targets 2030 focuses on ensuring results year after year. P.071 Quality > Unicharm Group Companies with ISO 9001, ISO 14001, and ISO 13485

ESG Division is responsible for tasks such as understanding the In addition, ESG assessment was added to the Groupwide core Certifications

environmental situation and it reports to the ESG Committee, strategy, which has been one of the metrics used to evaluate
Environmental Audits for Preventing Environmental Risk
which meets four times a year. Information and discussion points executive remuneration since 2020, and we are striving to
and Enhancing Performance 307-1
arising in the ESG Committee are also reported to the Board of accomplish the ESG strategies and targets under the leadership
Directors. of directors and executive officers. Unicharm conducts three types of environmental audits in order
to eliminate environmental risks and enhance environmental
performance, including target-focused audits such as:
(1) r egular audits in conformance with ISO 14001-compliant
Environmental Management Structure environmental management systems,
(2) o
 n-site confirmations at industrial waste processing partners,
and
(3) verification of compliance with laws and regulations.
Board of Directors

Results of Environmental Regulatory Audits

ESG Committee It has been confirmed that, in 2021, surveys, data, and docu-
Chair: President & CEO Secretariat: ESG Division Number of meetings held: Four per year
mentation for submission to governments as required by environ-
mental laws and regulations were submitted correctly. No fines
ESG Division have been incurred for violations of environmental laws or regula-
Information gathered from each process on a monthly basis
tions. Furthermore, there are no environmental matters pending.

Product
Marketing Purchasing Manufacturing Distribution Sales Disposal
development

P.011 Sustainability Management > ESG Promotional Structure

Unicharm Group Sustainability Kyo-sei Life External Partnerships Third-Party
Introduction Environment Society Governance
Sustainability Report 2022 Management Vision 2030 and Evaluations Assurance Report 039

Initiatives and Results Energy/Material Flow from a Life Cycle Perspective

Energy/Material Flow from a Life Cycle Perspective

INPUT OUTPUT
 301-1,301-3,302-1,302-2,303-1,303-3,303-4,
Resources
 305-1,305-2,305-3,306-1,306-4,306-5 Production input Discharge water  3,908,000 m3
Raw materials and auxiliary materials and steam
As a manufacturer of consumer products, we use resources in Materials manufacturer
Raw materials and auxiliary Japan 493,000 tons Fluvial discharge and
various aspects of our business activities. As a responsible manu- materials
CO2 Japan 142,000 tons
atmospheric release
Total 437,000 tons Overseas 294,000 tons
facturer that utilizes resources and runs businesses, we engage
Resources Transport P.062 Environmental Data > NOx and SOx Emissions (Japan)
in efforts to improve the environment at every stage of the Heavy oil, light oil, gasoline Japan 93 TJ
Effluent Japan 26,200 tons
supply chain in all our business activities, from the procurement Total 102 TJ Overseas 9 TJ
Total 77,700 tons Overseas  51,500 tons
of materials to the manufacturing, transport, and disposal of Liquefied petroleum gas (LPG), Japan 238 TJ
Effluent from outside Japan Recycled 22,400 tons
natural gas, utility gas Overseas 107 TJ Recycled 62,700 tons
products after use. Total 345 TJ Production Company premises Outsourced Outsourced disposal
Total 75,200 tons disposal  1,300 tons 12,500 tons
Steam Japan 77.7 TJ Overseas Recycled 40,300 tons
Total 77.7 TJ Overseas — TJ
Outsourced
Products
Electricity Japan 273 gwh disposal 11,200 tons
Total 721 gwh Overseas 449 gwh
Products Discharged on-site
Water Japan 5,039,000 m3 Japan 491,000 tons Total 2,500 tons Thermal recycling
Total 5,837,000 m3 Overseas 798,000 m3

Transport input
CO2 Japan  48,400 tons
Resources Atmospheric release
Light oil Japan 18,300 kl Transport NOx Japan  900 tons

Wholesale and
retail stores

Waste Japan  1,611,000 tons

Waste, incineration,
Aggregation period: January 1 to December 31, 2021 Containers and recycling
Japan  15,600 tons
Consumption packaging
Scope of aggregation: P.060 Environmental Data
Third-party certified: